AUDITING AND ASSURANCE SERVICES 1

Auditing and Assurance services

Student’s Name

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Auditing and Assurance services

There are a few internal controls that the agricultural industry can put in place to reduce

its risk in finance. One important control is the segregation of duties. This means separating the

tasks of authorization, custody, and recordkeeping so that no one individual has all the required

information to commit fraud. For example, the industry could separate the responsibility for

approving loans from the responsibility for making the loans. This would help ensure that no one

person can approve a loan that they have originated.

Another important control is accounting controls. Industry leaders can use accounting

procedures and software to help ensure that financial statements are accurate and reliable.

Additionally, regular reviews of financial statements can help catch any errors or fraud. External

audits can also help reduce risk. An external auditor is an independent party who reviews a

company's financial statements to ensure that they are accurate. If any errors or fraud are found,

the auditor will issue a report detailing the problems. This can help improve the agricultural

industry's financial health by bringing any issues to light and allowing them to be fixed.

When conducting an audit, auditors should focus on the areas of the company that are

most vulnerable to fraud (Butar-Butar & Indarto, 2018). For example, they may review the

company's financial statements to ensure that they are accurate, or they may test the company's

accounting controls to ensure that they are effective. Another important thing for auditors to do is

to communicate any findings that they uncover. If they find evidence of fraud or financial

instability, they should report this to the company's leadership to take corrective action. By

communicating with the company's leaders, auditors can help improve the agricultural industry's

financial health.
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References

Butar-Butar, S., & Indarto, S. L. I. L. (2018). Does Auditor Industry Expertise Improve Audit Quality In

Complex Business Environments?. Jurnal Akuntansi dan Keuangan, 20(1), 1-12.